European forex blog

EUR/USD sold off to last week’s lows, found support and rallied to a long term trend line that

has contained price multiple times in the last 10 days and sold off.  Price is still above 20 and 50

day MA’s and stuck between resistance from the long term trend line.  If price sells off again and

breaks the 20 day MA, watch for possible support at the weekly lows near approx. 1.4200.

1.4100 is near the monthly and weekly pivot which may also provide support if tested on

Monday or Tuesday.

GBP/USD rallied to the 50 day MA on Friday and also double topped at the weekly highs and

is currently testing the 1.6400 level again for resistance.  IF price rallies over the 50 day MA,

the next potential resistance is the fib target and weekly pivot beginning at 1.6481 and the next fib

target cluster at 1.6522.  If price fails at the 1.6400 level and sells off the fib retracement levels

from last week’s range are currently 1.6296, 1.6261 and 1.6226.

USD/JPY sold off last week and found support at the long term lows from early July and rallying

on Thursday/Friday.  IF price continues to rally from the strong support, the next potential

resistance are 93.52 and 93.88 as the 50/62% retracements from the high/low swings of the last

two weeks.  IF price sells off again to retest the lows of last week, watch for possible support at

92.00 (support level from last week) and 91.37 (fib target.)

USD/CAD had a huge sell off after the NFP news was released and continued to sell off late

afternoon on Friday as price closed below the 20 and 50 day MA’s.  IF the selling pressure

forces another sell off early this week, 1.0800 is the next major swing low point for potential

support and 1.0720 is the prior weekly low and fib target as well.  IF price finds support and

rallies, the current fib retracements for last week that may offer resistance are 1.0930, 1.0963

and 1.0996.*

USD/CHF rallied hard after the NFP news but still found resistance at the 20 day MA and

previously strong resistance level where price has stalled several times in the past 10 days.  IF

price again rallies on Monday, the next potential resistance is 1.0695 (weekly pivot and previous

swing high point) and 1.0714 (high from two weeks ago.)  IF price sells off, 1.0550 has been

strong also been strong support in the past several weeks and may again provide support if

tested early this week.